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Zune Sales Not So Bad After All

pyrbrand writes "Despite the iFanboy jabber that Zune sales were horrific, CNN has a story to the contrary. Turns out Zune was the #2 Digital Audio player in its first week of sales. Not a bad start for the challenger to the iPod throne. As others have pointed out the Amazon sales rank may have been thrown off by Zune sales being divided between the three colors."

39 of 366 comments (clear)

  1. divided sales by senatorpjt · · Score: 4, Insightful

    Aren't the sales for ipods also divided between all the various models and colors?

    1. Re:divided sales by Shads · · Score: 5, Insightful

      They're also missing the fact that a lot of clueless parents are going to be buying these for their kids for xmas and then are going to be returning them AFTER xmas for an iPod.

      --
      Shadus
    2. Re:divided sales by flyingsquid · · Score: 5, Insightful
      Well, if you read the fine print of the article you notice some interesting things. First, they say it's the #2 player in it's first four days of sales, not the first week. Since you'd expect sales to be highest on the first day the product is released and then to decrease from there as pent-up demand is met, I'd imagine that a full week's worth of sales data would show the Zune performing more poorly.


      Also, that's just one company's data. The article goes on to say, "Another research agency, Current Analysis, reported a somewhat similar sales reading during the same week. For the same week ending November 18, 2006, the Zune took 7 percent of the MP3 player market, falling behind both Apple and Sandisk.". So other statistics suggest that the Zune may only have been able to hit the #3 spot in the first week of sales. Again, this is going up against models that have been out for some time.

      But the really important thing to keep in mind is who we're dealing with and their original goal. These would be good sales for a new company, but for an established behemoth with the clout of Microsoft, and given their goal of producing an "iPod killer", this is a pretty lame showing. If anybody is being fanboyish here, it's people who are saying that not doing quite as horrifically awful as people predicted is some kind of victory for Microsoft. Not to say that you can count Microsoft out; they'll doubtless release improved versions. But first impressions count for a lot, as Apple learned that the hard way with Newton. Although Apple eventually produced a good PDA, the Newton never recovered from the bad press and bad reviews that the initial, not-ready-for-prime-time models received.

    3. Re:divided sales by kripkenstein · · Score: 5, Insightful

      [...]the red nano is one product. The black nano is another product. The black and white 30GB video iPod are two products. And so on.

      Yes, but this isn't the main way in how the report was misleading. The main problem is that TFA mentions (according to one analysis) 2nd place for the Zune, with 9% of the market, which places it before SanDisk and after Apple. Yet no numbers are given for Sandisk or Apple. For all we know, the numbers are 70% Apple, 9% Zune, 8.99% SanDisk. According to the other analysis, Zune had 7%, putting it behind SanDisk, which supports the theory that their market shares are very close.

      In addition, we don't know who the 7-9% was taken out of. If all of it came out of Apple's share, that is one thing, but if it came out of Microsoft's former PlaysForSure partners, mainly SanDisk, then it is another. TFA simply does not go into any detail here.

      So, TFA has nothing to dispute the theory, mentioned many times in the past on Slashdot, that the Zune will indeed be a 'killer', but mainly a PlaysForSure-killer, not an iPod-killer. On the contrary, that theory seems to be partially borne out by TFA and the blanks it doesn't fill in.

      IMO, in the short term the non-iPod market will be much simpler to encroach on than the iPod one. Yet, given time and Microsoft's endless pockets, we eventually see a change in the long run.

    4. Re:divided sales by mwvdlee · · Score: 2, Insightful

      I couldn't agree more.

      I don't think the Zune is a particularly good device (FYI, I don't own any MP3 player and think the iPod is overprices) but I'd atleast have thought the fanboys and gadget freaks would have put it firmly at #1 for the first week. Just like any new product in this market by a well-known vendor tends to do.

      Having it launch at #2, or perhaps even worse, seems like the first nail in it's coffin.

      MS will have to take some drastic measures, like loosening DRM and making wireless useful or perhaps just cutting the price, if it wishes to turn the tide.

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    5. Re:divided sales by Lars+T. · · Score: 2, Insightful
      Well, maybe that's why MS has kept its name out of the zune ads? Not because MS isn't cool enough for an mp3 player, but so that they can return to the market with a new version (which will need a new name and design after this desaster), without having tainted their brand already?
      With yet another DRM system?
      --

      Lars T.

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    6. Re:divided sales by EastCoastSurfer · · Score: 2, Insightful

      Microsoft has released a quality product that relatively stacks up quite well against the Ipod, in QUALITY AND SALES.

      Not an ipod fanboy or anything, but sales just isn't true. Second place with 7% is behind the first place ipod with 70%+. Not sure how that stacks up well against the ipod.

      Quality is of course debatable. I own an ipod and it works well for me. I've only played with the zune in the stores and the wheel on the front felt cheap and flimsy to me. Now that could have been b/c it was a display model or whatever, but only time will tell on the quality issue. Also, the screen while bigger looks like crap. Only later I found out that even though the screen is bigger than the ipods, it runs at the same resolution.

      At the end of the day I'm happy the zune was released. In fact, I wish they had released one with real wifi features built in and not some half-ass attempt like squirting. Competition is a great thing, and anything that can push apple to continue to innovate on the ipod is a plus for ipod and non-ipod owners alike.

  2. No matter how you put it... by IANAAC · · Score: 3, Insightful
    Someone will always come back and refute you.

    That's the nature of statistics.

    And fanboys.

  3. What other competition? by MMC+Monster · · Score: 3, Insightful

    I am a touch surprised that it beat out sandisk, since sandisk sells more at amazon.

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  4. I don't know why people want it to fail so badly.. by Bamafan77 · · Score: 2, Insightful

    The situation with Zune/iPod is no different than the situation with Office/ODF. *More* real choices = better for the consumer and lower prices by all! We need a serious challenger to Apple for no other reason than to force them to cross that final frontier - playing nicely with everyone else (i.e., not forcing their product chain down our throats with restrictive DRM). Once their current feature-set become commoditized, they'll have no choice but to add interoperability as a feature to differentiate themselves.

  5. Returns by Anonymous Coward · · Score: 5, Insightful

    They haven't accounted for returns though ;-)

  6. Raises the question by TubeSteak · · Score: 4, Insightful
    Microsoft's newest MP3 player, which launched just over two weeks ago, took second place in the portable digital player market in its first four days of sales, according to numbers generated by the market research firm NPD Group.
    Who took first place & why couldn't MS beat them?

    IMO, it isn't exactly fair to compare "Zune" with "ALL of the iPods".
    The Zune targets one small slice of territory that Apple has already staked out.
    --
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    o0t!
  7. Not there yet by LaughingCoder · · Score: 5, Insightful

    Personally I believe the WiFi feature will be a difference-maker, but as currently implemented on the Zune it isn't very enticing. I expect MS to come out with a software update in 6 months or so that will dramatically improve the wireless functionality. I used the early Smartphones and they had similar rough edges - they were clunky and missing many "obvious" features. But MS kept plugging along and now they have a very competitive phone operating system. With their resources and long-term view I figure they will ultimately make the Zune a formidible competitor to the iPod franchise. We also should remember that it's still early yet in this game. Portable media players only last about 3-4 years, so we haven't even really seen the first big replacement wave yet.

    --
    The more you regulate a company, the worse its products become.
  8. Re:I don't know why people want it to fail so badl by Bamafan77 · · Score: 2, Insightful

    And I hate to reply to myself here, but I can't help but wonder if Apple is making the same mistake they made before - creating a closed-technology stack for short term profits. I can't really argue against Jobs for doing this (he's a billionaire after all), but as was proven in the old days of the Apple, eventually the competition catches up and cuts you off at the knees. There's something to be said for playing nicely with everyone.

  9. Who's the "fanboy"? by Kopl · · Score: 5, Insightful

    "Despite the iFanboy jabber"

    Did anybody else stop reading after that?

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  10. Retail Only by manonthemoon · · Score: 5, Insightful

    Since the numbers are from big box retailers only, they are pretty skewed. No online (no store.apple.com, Amazon, etc), probably not Apple's retail stores either.

    Considering the initial curiosity factor and Microsoft employees, I would have expected the initial uptake to have a bigger impact than even this. If they are starting at this low of a baseline... lets just say Creative and SanDisk probably don't have much to worry about.

  11. Re:I thought I would point out by Anonymous Coward · · Score: 1, Insightful

    That's a little misleading of an argument, considering what it really does (and it's usefulness)

  12. I personally don't care by slimjim8094 · · Score: 4, Insightful

    They can do whatever they want. I won't buy it, and it doesn't harm me

    Wait, huh? Oh crap, I forgot. Microsoft's "we'll-pay-you-an-'all-our-users-are-thieves'-tax" shenanigans are setting "precedent". Now, everyone else (Apple) is "encouraged" to do the same...

    Damn...

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  13. irrelevant by EMeta · · Score: 4, Insightful
    I apologise for feeding this troll of an article, but nevertheless.

    Certainly there was some base of people who wanted (some later to be usefull) wi-fi plus an FM receiver plus video at that price point. Microsoft advertized enough that these people knew about it, so they got it when they first had their chance. That group of people, however, is not particularly related to digital music player buyers as a whole, as it is only continuous purchases over its life span that will be untimately meaningful. Furthermore, this week was singled out from the Zune being the only new thing on the market. That they only got second when they were the only new thing around--for over a month or something?--is actually rather sad.

    A more representative week would be, say, the week after Thanksgiving, which shows a lot about retail buying habits (and is a significant percentage of such).

  14. Ah, a balanced argument... by oberondarksoul · · Score: 1, Insightful
    "Despite the iFanboy jabber... " (emphasis mine)
    Well this looks like a nice, balanced, totally unbiased article, doesn't it? If the author's going to insult anyone who dares criticise the Zune, I'm going to happily ignore him.
    --
    And tomorrow the stock exchange will be the human race
  15. Thanks! I can finally pirate my records! by KalvinB · · Score: 3, Insightful

    In all seriousness that's actually a great gift for someone with an old record collection which is pretty much everyone over 40 or 50.

  16. Re:I don't know why people want it to fail so badl by burnin1965 · · Score: 2, Insightful

    The situation with Zune/iPod is no different than the situation with Office/ODF


    I suppose if your talking DRM only then you are correct. Apple holds a monopoly on the idiocy of DRM in digital music stores and players. But the last thing we need is another player with competing DRM, we need to get rid of DRM altogether.

    The market for MP3 players is highly competitive, Zune brings nothing new to the market and is simply a Microsoft me too product. It will make no difference in fair use for music consumers and in fact brings a BS royalty tax on every device consumers purchase. Now even if you don't buy the corporate backed music you still have to pay for it in the form of a royalty to the coroprate music industry on every Zune sold. Thanks Microsoft.

    burnin
  17. #2 First Week != #2 overall by Dragon+of+the+Pants · · Score: 4, Insightful

    It's a new gadget and it was hyped to the extreme. Obviously it';s going to sell well. The sad thing is the new product buzz didn't stop people from buying "old" iPods at a FAR larger rate. And the study doesn't even include iPods sold in Apple Stores, which is a huge bias. Look at where the Zune is now. It's nowhere. Nice try, but the numbers don't mean a damn thing unless they're sustainable.

  18. Re:I don't know why people want it to fail so badl by abes · · Score: 4, Insightful

    Normally I would agree with you .. it would be nice for Apple to have pressure to do new better stuff with their ipod besides make it smaller and redder. But, and this pains me to say, in this case Apple seems to have actually done good with their dictatorship (it pains me to say dictatorships are good, rather than saying something bad about Apple).

    See the related ./ stories, but because M$ caved into Universal, it's now causing issues for Apple. Apple was the only company willing to fight for a flat rate for the consumer and make it work. If it weren't for Apple's iTunes store, buying music onlne would still really suck.

    And no, I don't like DRM'd crap, but I do like our environment better, and don't care to pollute it with more CDs that I'm just going to rip. Would I rather just because to get plain MP3s. Yeah, but that isn't going to happen anytime soon. From personal experience, Apple's DRM is pretty decent, and only got in the way once, where I had to deauthorize all my computers.

    So in this case, competition actually isn't looking good for consumer's rights, primarily because most consumers buying these things aren't well informed.

  19. Re:I don't know why people want it to fail so badl by ceoyoyo · · Score: 5, Insightful

    Apple's music store has DRM, but there isn't any anywhere else. The Zune adds DRM to your un-DRMed songs for you. Plus the music industry royalty, that they're now pressuring Apple to add. Seems like a definite step backward.

  20. Its all downhill from the first week. by kerouacsgp · · Score: 3, Insightful

    "#2 Digital Audio player in its first week of sales" Its only the first week. Products usually post their strongest numbers when they launch. Let's see their numbers after 1 year of sales.

  21. Re:I don't know why people want it to fail so badl by illumin8 · · Score: 4, Insightful
    The situation with Zune/iPod is no different than the situation with Office/ODF. *More* real choices = better for the consumer and lower prices by all! We need a serious challenger to Apple for no other reason than to force them to cross that final frontier - playing nicely with everyone else (i.e., not forcing their product chain down our throats with restrictive DRM).
    Seriously wtf are you smoking? The Zune has DRM that is way more restrictive than the iPod. Songs that expire? Your own bands music that can be splooged (or whatever they call it) to somebody wirelessly but they can't keep it and it expires after they listen to it 3 times?

    How you can compare the DRM infested Zune with ODF is beyond me. One is an open document specification that could enable people on different OS, hardware, or software to exchange files, the other is a closed platform music player with DRM so restrictive that your entire music collection can auto-delete itself because you forgot to pay your monthly bill...
    --
    "When the president does it, that means it's not illegal." - Richard M. Nixon
  22. Apple has real competition already by SuperKendall · · Score: 4, Insightful

    Apple has had some good competition already - the Archos players, the Creative stuff and the Sandisk. Each of those has brought something interesting to the table and made Apple keep advancing.

    What has the Zune brought that's new? WiFi sharing that is so limited it does not exist, and the standard now that EVERY MP3 player going forward will be pressed by labels to pay a small fee just for the right to exist! Has the existance of the Zune REALLY improved the market in any way?

    Competition is great, but Microsoft left the door wide open for the RIAA to get a foot in. For that alone they deserve endless scorn and market failure.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  23. MS blew it by NTesla · · Score: 3, Insightful

    Microsoft has enough employees who will have to buy their crappy product (to show company spirit) to stay in the top 3 for at least another two weeks. And then it's over.
    Apple wasn't the first out to market with an mp3 player but unlike MS they did their research. Every new generation of Ipod gets better its interface is extremely easy to learn and use. Itunes is not bad and I went out and bought 5th gen video ipod just because of how easy it is to subscribe to podcasts (G4, SG, etc) and ease of keeping everything in sync.
    I purchased the very second mp3 player that became commercially available in USA - Diamond Rio PMP300 in 1998 and Creative Lab's Nomad ][ a little bit later. Both were not great and the first suffered from slow transfer speed and second from just-ok interface but at least both products worked out of the box and I didn't have to wait a year for some feature that was promised to start working - NO wireless sync with PC(even my old motorola e680i phone can do this via bluetooth), crippled song "sharing" and no Vista support YET even though Vista is shipping in a month to PC manufacturers. Very rushed - feels like a pot-luck dinner.
    Finally, I think MS blew it because they are a software company first and they couldn't even write (OR STEAL) something decent. They only had 10 year to sit there and watch everyone else do it. I feel bad for Toshiba, they didn't really need this.
    I guess they didn't learn from Panasonic's 3DO fiasco where Trip Hawking tricked them into giving his company $100 million to blow on a video game system that didn't sell well.

  24. The #1 reason to hate the Zune by loqi · · Score: 5, Insightful

    There is a very simple reason to both avoid purchase of the Zune and pray to 42 that it fails. For every Zune sale, the record industry gets a cut. If you buy a Zune, you are propping up the RIAA. You are essentially paying a tax that assumes you are guilty of copyright infringement before you've even committed it (and of course you could get still get sued by the RIAA even after paying the absurd tax). This should sound familiar to Canadians.

    --
    If other reasons we do lack, we swear no one will die when we attack
  25. A new tag suggestion - "zuneral" by SuperKendall · · Score: 2, Insightful

    Let us all help the band play merrily along while the Zune ship slides into the murky waters of consumer disinterest, by labeling this and all subsequent Zune trolling articles with the flag "zuneral".

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  26. Re:I don't know why people want it to fail so badl by Firehed · · Score: 5, Insightful

    While I agree in principle with you, iPods are designed to be used as portable audio players. Being able to use them as an external drive is a bonus, not an advertised feature. On the other hand, the blank CD tax in Canada is truly unfair, because blank media is designed to be used in a large number of ways, NOT just audio. I think of the last 200 CDs I've burned, about five were audio (and MP3 CDs at that, which is a data disc on a technicality). Since finding that old cassette adapter that I plug into my iPod, I've had no need for audio CDs.

    And for the sake of Devil's Advocate, you should (by the industry's logic) be forced to pay a royalty for using your iPod as a portable drive for your camera. Not for the music, but for the painfully high chance that you've snapped a shot that included something copyrighted... basically anything with a backdrop other than a landscape (ads plastered everywhere, any branded products, etc). Just like the painfully high chance you infringed copyright of (not stole... they still have their copy!) music, right?

    Don't get me wrong. The idea sucks, and is downright offensive to almost everyone who actually buys music. But a piracy tax on iPods DOES make more sense than blank media taxes, simply due to intended use. As far as I'm concerned, Apple shouldn't have to pay them a cent as long as they keep the "Don't steal music." sticker on the front (nor should any other brand). As far as I'm concerned, such a tax legitimizes piracy - a Slashdot post I read earlier today indicated that this logic held up in Canadian court. I'd be all for the idea if I didn't know that the logic couldn't possibly hold up in a court system as screwed up as our (US) own.

    --
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  27. Re:I thought I would point out by Reality+Master+101 · · Score: 5, Insightful

    MUCH warmer.

    "Warmer" is a code word for "distorted". You may like the effect of the distortion -- but it's still distortion, and not the way the sound is intended to be heard. See also: tube amps.

    --
    Sometimes it's best to just let stupid people be stupid.
  28. The favourite recipe of talentless journalists by Gyarados · · Score: 3, Insightful
    1. Take any common conception.
    2. Create an article which suggests that the opposite of your chosen conception is actually true.
    3. Reference and quote from any research which supports your argument, regardless of its lack of validity or corroboration.
    4. If no supporting research exists, justify your argument using pseudoreasoning instead.
    5. Optionally insert some unfounded predictions.
    6. Insert a generous number of advertisements.
    7. Bathe in your inflated sense of self-esteem.
  29. Re:I don't know why people want it to fail so badl by Frosty+Piss · · Score: 5, Insightful
    See the related ./ stories, but because M$ caved into Universal...

    Microsoft didn't "cave" to Universal. To "cave" implies resistance. Microsoft and Universal have always been on the same page.

    --
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  30. Re:I don't know why people want it to fail so badl by eclectic4 · · Score: 4, Insightful

    "i.e., not forcing their product chain down our throats with restrictive DRM)"

    As other have pointed out one billion times, Apple doesn't force restrictive DRM on anyone. You can use your iTunes and iPod without one illegal, low quality, DRM'd file.
    Not one. I can buy 1000 CD's from my local music store, RIP them, and have iTunes synch them to my iPod und DRM'd, legally (unlike the Zune's software counterpart).

    If you wish to purchase songs legally for download via the internets, iTunes not only has a far more sane DRM scheme than almost all others, but I've never fealt restricted by it. Not one bit. I can burn CD's, copy them to other computers (5 a year... do you need to reasonably have them on more?), and can even RIP those burned CD's to produce non-DRM'd iTunes purchased songs.

    I have no idea why people still claim this.

    --

    "The greatest obstacle to discovery is not ignorance - it is the illusion of knowledge." - Daniel Boorstin
  31. lol by Tom · · Score: 3, Insightful

    the Amazon sales rank may have been thrown off by Zune sales being divided between the three colors.

    You mean, like the iPod sales being divided between 14 or so models and colours?

    Yes, the zune's initial week was fairly good. If you read just a little further on any mainstream press article, however, you'll see that the total failure was attributed not to first week sales, but to the fact that after all the fanboys and easy-to-fool idiots had bought one, sales dropped to almost nothing. The same Amazon sales rank that was #2 in the first week was #13 in the second if I recall correctly. Right now, it's #60, which definitely qualifies as "abysmal". The 4 GB silver nano, the lowest listed iPod model, beats it jumping on one leg with both hands tied behind its back (rank #15).

    Sorry, MS fanboy, zune is as dead as a doornail and twice as hard to sell.

    --
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  32. Re:It's a difference maker alright -WiFi Audio Siz by Adult+film+producer · · Score: 2, Insightful

    That article is hilarious. His first comment, "I still think it's an excellent portable media player." Then he goes on to list 10 doozies that microsoft needs to fix, actually what he's saying is, "I need portable media player produced by someone else." But I don't think he's figured that part out yet.

  33. Re:I don't know why people want it to fail so badl by maximthemagnificent · · Score: 4, Insightful

    If I thought a piracy tax would end all other forms of litigation and DRM from the RIAA,
    I might give it some credence, but we all know it won't. They want it both ways.

    Maxim